Four high-profile
venture capital firms have pitched in to the latest round of funding for a compay that says it has a design that will make wind turbines more efficient, reliable and affordable.
GE Energy Financial Services, CMEA Capital, Khosla Ventures and Energy Capital
Management will invest a combined $13.2 million in Danotek Motion Technologies. Energy Capital
Management manages the venture portfolio of Statoil ASA (NYSE: STO).
Danotek makes what are called permanent magnet generators (PMGs) for wind turbines. The company says they contain no "wear-and-tear parts." making them more reliable and less costly to maintain.
Danotek also produces motors, drives, pumps and other accessories for
electric and hybrid vehicles.
Danotek, based in Canton, MI, said the investment will allow it to expand research and development,
install utility-scale megawatt load-testing equipment, hire and train workers and launch
production of a projected 4,000 permanent magnet generators (PMG’s) annually.
Daotek says PMG technology is also more efficient, capable of operating at slower and variable speeds. As a result wind farms would be able to harvest an average of 15% more
energy, providing approximately $1 million in additional revenue over the life of the turbine, Danotek said.
GE Energy, Statoil and CMEA together invested $7.25 in November 2008 to support Danotek’s
startup. Now joined by Khosla Ventures, the firms are investing an additional $13.2
million to move Danotek into production. The investment from Khosla Ventures is the first from
its late-stage Ventures Expansion Fund.
“At Khosla Ventures we invest in great entrepreneurs determined to build companies with lasting
significance,” said founder Vinod Khosla. “Danotek has innovated a key technology that
promises to significantly enhance the economic proposition of wind energy. We are thrilled by
the opportunity to help bring their advanced generators to the global market.”
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